We’re now in the 2024/25 tax year which means that you get a new £20,000 ISA allowance to use.
Before you look to use your ISA allowance this tax year, it is a good idea to review any existing ISAs you hold elsewhere and see if you are making the most of your money.
Cash ISAs or Stocks and Shares ISAs?
With the cost of living crisis continuing, it is important that your ISAs are performing well and outpacing inflation.
Inflation is beginning to level out and interest rates are currently higher than they have been for several years. However, the interest rates are predicted to drop in the next 6 months or so. If interest rates do drop the it is possible that your Cash ISAs will be losing money in real terms if inflation is higher than interest rates.
Cash ISAs with the best interest rates often involves locking your money away for a specified number of years but some people prefer the security and no risk option of keeping their money in cash even though it is not performing well. Whereas a Stocks & Shares ISA offers the potential to grow your money more than a Cash ISA.
At Four Wealth Management, we offer a Stocks and Shares ISA and you will have a meeting with a financial adviser to determine which investments are suitable for your individual circumstances and attitude to risk.
Book a no-obligation meeting online now or call us on 0117 973 0500. The first meeting usually lasts around one hour and can be at your home address, at one of our offices or on zoom.
How long have you held your Cash ISAs?
If you have had your Cash ISAs for several years then it’s likely you have also built up another emergency cash reserve and you are now holding a lot of assets in cash. This means that in the long term you are less likely to get the same level of returns and growth that a Stocks and Shares ISA could deliver. It is important that you review your circumstances regularly.
At Four Wealth Management, we can review your ISAs with you.
Book a no-obligation meeting online now or call us on 0117 973 0500.
Should I have a mix of Cash ISAs and Stocks & Shares ISAs?
You have the option to split your £20,000 ISA allowance any way you like across a Cash ISA and a Stocks and Shares ISA as long as you stay within the overall limit.
To make the most of ISAs, it is best to invest in assets which have the potential to grow your money over time.
A Cash ISA is generally recommended for short term financial goals where you might need access to the money.
A Stocks & Shares ISA is for the medium-long term. Any growth in ISAs is free from income and capital gains tax.
A financial adviser at Four Wealth Management, can help you to work out how much you should hold in cash and how much you can invest in a Stocks & Shares ISA.
Review your ISAs and create a financial plan for your future
Book a no-obligation meeting online now or call us on 0117 973 0500. The first meeting usually lasts around one hour and can be at your home address, at one of our offices or on zoom.
The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.
An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA.
Cash ISAs are not available through Four Wealth Management or St. James’s Place.
The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.
